EBITDA Calculator
Inputs & Options
- Enter expenses as positive amounts. Use negative numbers for benefits, credits, or reversals.
- Use the same period for every input: monthly, quarterly, annual, or TTM.
- Margins are left blank when revenue is zero or not supplied.
Use this when you already know EBIT or operating income and need EBITDA.
Formula: EBITDA = EBIT + Depreciation + Amortization.
Use this when your income statement starts with net income.
Formula: EBITDA = Net income + Interest + Taxes + Depreciation + Amortization.
Use this to calculate EBIT from net income. Depreciation and amortization are optional here so EBITDA can also be shown.
Formula: EBIT = Net income + Interest + Taxes.
Use this when you have revenue and cost lines. Cash operating expenses should exclude depreciation and amortization.
Formula: EBITDA = Revenue - COGS - Cash operating expenses + Other operating.
Optional for valuation, lending, and buyer analysis. Enter normal add-backs as positive amounts and credits as negative amounts.
Results
Calculation steps
Advertisement
Calculate EBITDA, EBIT, and Margins
This calculator turns income statement figures into EBITDA, EBIT, EBIT margin, and EBITDA margin. You can start from operating income, net income, or revenue and costs, then add depreciation expense and amortization expense separately to see the full EBITDA formula.
EBIT, or earnings before interest and taxes, is commonly treated as operating income when non-operating gains and losses are excluded. EBITDA, or earnings before interest, taxes, depreciation, and amortization, adds back non-cash D&A charges. EBITDA is useful for comparing operating performance, but it is not the same as cash flow because it excludes working capital, capital expenditures, tax cash payments, and debt principal.
Core formulas
- EBITDA from EBIT = EBIT + Depreciation + Amortization
- EBITDA from net income = Net income + Interest + Taxes + Depreciation + Amortization
- EBIT from net income = Net income + Interest + Taxes
- EBITDA margin = EBITDA / Revenue
- EBIT margin = EBIT / Revenue
Informational only - not accounting advice. Use the same reporting period for every input and review company-specific adjustments carefully.
EBIT vs EBITDA
| Metric | Includes | Excludes | When to use | Key limitation |
|---|---|---|---|---|
| EBIT | Operating profit after depreciation and amortization | Interest and income taxes | Capital-intensive companies, operating profit analysis, depreciation-heavy industries | Can be affected by accounting estimates for asset lives and amortization schedules |
| EBITDA | Operating profit before depreciation and amortization | Interest, taxes, depreciation, amortization, capital expenditure needs, and working capital | Valuation multiples, lender screens, comparisons across tax and financing structures | Can overstate performance when a business needs heavy reinvestment in assets |
Worked Examples
| Scenario | Inputs | Calculation | Result |
|---|---|---|---|
| Operating income example | EBIT 2,500; depreciation 300; amortization 200 | EBITDA = 2,500 + 300 + 200 | EBITDA = 3,000 |
| Net income example | Net income 1,450; interest 350; taxes 700; depreciation 300; amortization 200 | EBITDA = 1,450 + 350 + 700 + 300 + 200 | EBITDA = 3,000; EBIT = 2,500 |
| Revenue and expenses example | Revenue 10,000; COGS 4,000; cash OPEX 3,500; D&A 500 | EBITDA = 10,000 - 4,000 - 3,500; EBIT = 2,500 - 500 | EBITDA = 2,500; EBIT = 2,000 |
| Adjusted EBITDA example | EBITDA 3,000; one-time expenses 400; owner compensation adjustment 150 | Adjusted EBITDA = 3,000 + 400 + 150 | Adjusted EBITDA = 3,550 |
Use positive numbers for expenses and add-backs. Use negative numbers only when an item is a benefit, credit, or downward adjustment.
FAQ
How do you calculate EBITDA from net income?
EBITDA = net income + interest expense + income taxes + depreciation + amortization. Enter tax benefits or credits as negative numbers.
How do you calculate EBITDA from EBIT?
EBITDA = EBIT + depreciation + amortization. EBIT is often called operating income when the statement excludes non-operating items.
How do you convert EBITDA to EBIT?
Subtract depreciation and amortization from EBITDA: EBIT = EBITDA - depreciation - amortization.
What is EBITDA margin?
EBITDA margin is EBITDA divided by revenue. The calculator leaves the margin blank when revenue is zero or not supplied.
What is a good EBITDA margin?
It depends on the industry and business model. Compare against similar companies, the same company over time, and the capital needed to sustain revenue.
Is EBITDA the same as cash flow?
No. EBITDA ignores working capital, capital expenditures, taxes paid, debt principal, and other cash timing differences.
Why is EBITDA non-GAAP?
EBITDA is non-GAAP because it is not a standardized accounting profit measure. Adjusted EBITDA is even less standardized because add-backs vary by company.
Is operating income the same as EBIT?
Often, but not always. Operating income can be used as EBIT when it excludes interest, taxes, non-operating gains, and non-operating losses.
When is EBIT better than EBITDA?
EBIT is often better for capital-intensive businesses because depreciation and amortization represent real asset costs that EBITDA adds back.
